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Offshore assets – notifying HMRC

Tuesday 21st August 2018

HMRC’s ‘Requirement to Correct’ legislation comes into effect in September. Under the rules, UK taxpayers must notify HMRC about any offshore tax liabilities relating to UK income tax, capital gains tax, or inheritance tax. So, actions like renting out a property abroad, transferring income and assets from one country to another, or even renting out a UK property while living abroad could mean taxpayers face a tax bill in the UK.

If you do this the tax interest will be collected and the existing penalty rules will apply. However, failure to disclose any relevant information before the deadline will result in the new penalties becoming applicable – these are likely to be much higher than the existing penalties, with a minimum penalty of 100% of the tax involved.

We want to make sure you are aware of this requirement in case it is applicable to you. If you are and you are confident that your tax affairs are in order, then there is no need to worry. However, if you are unsure whether you might be impacted by this new legislation, you should contact your accountant or tax adviser.

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